CASE STUDY
DISPOSITION PERFORMANCE
| PROPERTY |
Atrium Corporate Campus & Executive Center Portfolio
Somerset, New Jersey
Atrium Corporate Campus is a four-building, 952,400
sf office complex and exhibit center situated on 66.7
acres in Somerset. The Corporate Campus is considered
among New Jersey’s premier office parks and is
situated in one of the state’s strongest sub-markets.
Campus Drive Executive Center is comprised of two
four-story office buildings totaling 200,000 sf, situated on 12.8 acres. This property was acquired from
Goldman Sachs, an Institutional seller, in an off-market
transaction. |
| TYPE |
Atrium: Class A | Campus: Class B |
| PORTFOLIO SIZE |
1,152,400 SF |
| ACQUISITION DATE |
January 27, 2005 |
| PURCHASE PRICE |
$78,300,000 |
| CAPITAL RAISE |
Institutional Equity Partner: Rockpoint Group;
Lender: Istar Financial |
| ASSET MANAGEMENT |
Completed aggressive expense reduction strategy leading to a cost savings of more then $1 million annually. Implemented multi-million dollar capital improvement plan for repositioning strategy. Initiated aggressive marketing and leasing strategy with two national brokerage firms leading to lease-up of over
300,000 sf. |
|
| DISPOSITION DATE |
December 19, 2005 |
| SALES PRICE |
$103,850,000 |
| HOLD PERIOD |
11 Months |
| INVESTOR IRR |
56% |
DISPOSITION STRATEGY
Within nine months of acquisition, peak market
conditions were identified and early achievement
of maximum asset value and project momentum
were recognized. Through the implementation of
a previously well defined disposition strategy the
sale was completed within eleven months of acquisition, producing a 56% IRR.
|
